Snowflake Inc (NYSE:SNOW) Surpasses Q2 Earnings and Revenue Estimates

Snowflake Inc (NYSE:SNOW) delivered a robust second-quarter fiscal 2026 performance, surpassing analyst expectations on both revenue and earnings per share. The cloud data platform provider reported revenue of $1.14 billion, marking a 31.8% year-over-year increase and exceeding the consensus estimate of $1.11 billion. Product revenue, a key metric for the company, reached $1.09 billion, also growing 32% year-over-year.

On the profitability front, non-GAAP earnings per share came in at $0.38, significantly higher than the $0.27 analysts had projected. This represents a 42.6% beat relative to expectations and demonstrates the company's ability to maintain strong operational efficiency despite continued investments in growth initiatives.

The market responded enthusiastically to these results, with shares jumping approximately 12.5% in after-hours trading following the announcement. This positive reaction reflects investor satisfaction with both the top-line performance and the company's ability to exceed profitability expectations.

Key Financial Highlights from Q2 FY2026:

• Product revenue reached $1.09 billion, representing 32% year-over-year growth • Remaining performance obligations totaled $6.9 billion, up 33% year-over-year • Net revenue retention rate stood at 125% as of July 31, 2025 • The company now counts 654 customers with trailing 12-month product revenue exceeding $1 million • Non-GAAP operating income was $127.6 million, representing an 11% margin • Operating cash flow was $74.9 million, with free cash flow of $58.2 million

Forward Guidance and Analyst Expectations

Looking ahead to the third quarter of fiscal 2026, Snowflake provided product revenue guidance in the range of $1.125 billion to $1.130 billion, representing 25-26% year-over-year growth. This outlook appears slightly above the analyst consensus estimate of $1.11 billion for the next quarter, suggesting management remains confident in the company's growth trajectory.

For the full fiscal year 2026, the company maintained its product revenue guidance of $4.395 billion, which would represent 27% year-over-year growth. This aligns with analyst expectations of $4.62 billion in total revenue for the fiscal year.

CEO Sridhar Ramaswamy emphasized the company's momentum, stating that "thousands of customers are betting their business on Snowflake and more than 6,100 accounts are using Snowflake's AI every week." This commentary underscores the company's positioning within the growing artificial intelligence ecosystem and its ability to capitalize on the increasing demand for data infrastructure that supports AI workloads.

The strong quarterly results and solid guidance suggest Snowflake continues to execute effectively in a competitive cloud data platform market. The company's ability to maintain high growth rates while expanding profitability metrics appears to be resonating positively with investors, as evidenced by the significant after-hours stock price movement.

For more detailed earnings information and future estimates, readers can review additional data here.

Disclaimer: This article is not investment advice. Investors should conduct their own research and consider their individual financial circumstances before making investment decisions.